Chapter 1- Legal Foundations
Lecture:
What is law? Where did it come from? Where do laws originate? What is the purpose of
having laws? From your reading you can see that there are many functions of law.
What’s so interesting is that from the beginning of civilization, there existed some form
of code or law (whether spoken or written) that we (humans) lived by. Laws vary from
state to state and from country to country. Laws can be formed from on bases of
religion, moral, ethical, and environmental concepts, to name a few.
The law consists of rules that regulate the conduct of individuals, businesses, and other
organizations which must be obeyed and followed by citizens, subject to sanctions or
legal consequences. The U.S. legal system is one of the most comprehensive democratic
systems of law ever developed and enforced. Keep in mind the law evolves and changes
along with the norms of society, technology, and the growth and expansion of commerce
in the United States and the world.
Our sources of law in the U.S. are no stranger to you by now. We learned in grade school
about the U.S. Constitution, and some of you may remember that video on “How a bill
becomes a law” (I can hear the jingle in my head!). So why is this so important? In order
for us to use the law effectively; especially in the business setting, it’s important to know
where these laws come from and how they affect all aspects of business including
stakeholders.
Recall that we have three branches of government. These branches serve the function to
uphold the tenants of the U.S. Constitution, which is the “Supreme law of the land.” The
U.S. Supreme Court is the highest and final court. It is made of up 9 Justices who write
opinions on key cases as it relates to matters that have been appealed in a lower court.
The Constitution establishes the federal government and enumerates its powers. Powers
not given to the federal government are reserved to the states. State constitutions
establish state governments and enumerate their powers.
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Legislative branch (congress): Has the power to make (enact) the law.
Executive branch (president): Has the power to enforce the law.
Judicial branch (courts): Has power to interpret and determine the validity of
the law.